Amazon has suddenly stopped bidding on Google Shopping ads entirely, and this is a big move that will affect the ad costs and results for other companies. As Mike Ryan (The Head of Ecommerce Insights at SMEC) says, it is a colossal shift that will affect other retailers.
Mike Ryan (Ecommerce Insights Head at SMEC) tells us that Amazon has been slowly quitting the Google Shopping ads for about a year now, and now it has gone from pulling back slowly to putting a complete stop to it.
Moving forward, there will be no more Amazon ads showing up on Google Shopping. If you are an advertiser or business owner, stick with us till the end to understand the real reason behind this move and how it can affect you.
Why Now? What’s Behind This Move?
There is not one specific reason behind the problem. It can be budget-related for the ads or tied to Amazon’s broader strategy, maybe around AI or their ad plans.
For all the brands and sellers that are out there relying on Amazon Ads, this can be a game-changing event.
If we look from a historical point of view, Amazon used Google Shopping as a “Trojan horse”—a way to bring customers into their ecosystem. With Amazon pulling out, some brands might lose traffic. Various experts have given their opinions on the news.
According to a report, Amazon shows up in about 30% of Shopping auctions, so its exit is a huge deal.
David Kyle has mentioned that Amazon products don’t even show up in free listings anymore, as though they’ve disconnected from Merchant Centre.
Many experts think that it is only temporary, possibly tied to pauses during Amazon Prime Day or plans to return around back-to-school shopping season, and some experts also wonder if this is a big experiment, like other companies have done in the past.
This can be a perfect moment for brands to run Google search to Amazon ads themselves because Amazon isn’t doing it anymore. Other companies can get visible space for their ads for a cheaper rate. As per the news, this change isn’t subjected to one location; Amazon has paused Google Shopping ads in many places around the world.
Why It Matters
This news brings many updates with it. Amazon pulling out of Google means there’s less competition in Google Shopping auctions, and it eventually means there will be Lower costs per click (CPCs) for your ads. The biggest competitor leaving means there will be better ad visibility.
There will be boosted click-through rates for remaining advertisers. With ad prices dropping, it’s easier for others to show up; companies running Google Shopping ads may benefit right now.
Coming to an end, with Amazon’s sudden decision to quit Google Shopping Ads, other retailers will see it as a gain, but the bigger question is: Is this pause short-term or part of a long-term strategy? It’s a bigger change with an unknown duration. It is opening up space for others, but it is not certain how long that will last.
